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10 THINGS TO KNOW BEFORE GETTING A CREDIT CARD
Many people are opting for a credit card now a days. Credit Card is basically a medium to take a short term loan from the bank. If you are planning to get a credit card from the bank then, you should be sure that you know the following things about the credit card:
A credit card is not a debit card
You should be aware of the fact that a credit card is not same as the debit card, there is a difference between the too. Basically a credit card is like taking a short term loan from the bank. But debit card takes money from your bank account and the transactions are done on the basis of the money available in your account. The credit card carries interest while there is no such interest on the debit card.
Types of Credit Cards
There are two types of credit cards: secured and unsecured. While opting for a secured credit card, you need to have a cash deposit. This type of credit card is preferred by the people who have low credit score. On the other hand, while using an unsecured credit card you need not have a cash deposit. Also, the unsecured credit card has a limit and its access depends upon your credit history and credit score.
Annual Percentage Rate
You might have seen the term APR in the commercials. The APR refers to the annual percentage rate. APR is the interest rate that you have to pay when you fail to make the payment on time. This means that if you miss to pay the payment on time then you might have to pay APR as high as 30%. So it is always advisable to check the actual percentage of the Apr before applying for the credit card.
Do have a look at nonstandard fees
There are credit cards that have some non-standard fees. So before applying for a credit card make sure that the credit card does not have any non-standard fees.
Make the payments wisely
If you are using your credit card, then make sure that you send the money that you are having and keeping in mind the minimum amount that you need to pay off your credit card bills monthly. Try to pay the credit card bills in full each month so that you do not have pay the interest.
Watch out for an annual fee
If you won’t be using the credit card quite frequently then always opt the credit card that has less or no annual fee at all. There are many credit cards available without any annual fee.
Use the Credit Card Benefits
There are many benefits that come with the credit cards. If you understand these benefits properly, then you will be able to make out of the credit card judiciously. Also there are many terms and conditions on the benefits of the credit card, so you need to be careful enough while using it.
A credit card agreement is binding
for a Apply Credit Card means that you are accepting the term and conditions of a legal contract. Make sure that you read all the terms and conditions carefully.
Be sure to shop around
There are many credit cards available with lots of benefits. So always do the comparison shopping before opting out for any of the credit card. The customer service desk will always try to make you buy their credit card but opt for the credit card wisely. Do not get pressured by any of the credit card store.
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